Global payments behemoth PayPal could be in for a spot of bother in Asia after a much heralded partnership with Chinese e-commerce platform DHGate.com, its biggest in the region, ended this week.
The firm confirmed to The Reg that as of Monday DHGate does not accept PayPal as a payment method, although failed to elaborate on the …

American shop without holding their breath, saying a prayer or crossing their fingers

Shopping confidence, privacy confidence, security confidence and brand confidence: these are the attributes that causes buyers to click the send button after keying their credit card information. Who wants to worry about credit card information compromises and the collection of customer information? Our laws, though often broken, are present and understood, but laws in China are 'truly foreign' and there is little legal recourse, if any, when you experience fraud or scams online.

I predict that most all American customers feel this way (uncomfortable) and U.S. sales will take a dip. Foreign webites accepting PayPal will experience new customers in droves. I'm sure they'll thank DHgate for the facilitation.

DHgate will quickly realize that they should accept PayPal regionally and only in the highest volume areas. Based on the "Fire Sale" that I've witnessed since the fallout, it looks like the vendors are getting desperate to sell, but they're too dumb to realize that PayPal is what provided emotional security for buyers. I predict that they'll awaken to the reality of 'American brand success versus foreign brand avoidance.'

Re: Americans shop without holding their breath, saying a prayer or crossing their fingers

It appears that PayPal was mainly at issue with the counterfeit sales on DHgate. Buyers who were misled into purchasing counterfeits were seeking to do full returns and prompted disputes. Credit card, escrow or account charge backs cause collateral damage (money lost) for both the buyer and seller. DHgate freely allowed counterfeiters to do business on their site, but PayPal did not want to be agent to such transactions, anymore.